Summers dictates

ChrisD(RJ) chrisd at russiajournal.com
Thu Jun 13 05:13:23 PDT 2002


Versia No. 22 June 10, 2002 A CHUBAIS ON BOTH YOUR HOUSES Chubais, the Tsar of Russia Author: Yulia Pelekhova [from WPS Monitoring Agency, www.wps.ru/e_index.html] ANATOLY CHUBAIS, HEAD OF RUSSIA'S ELECTRICITY MONOPOLY, IS SAID TO INTEND TO RUN IN THE PRESIDENTIAL ELECTION OF 2008. HIS VICTORY WOULD BE ASSURED BY MONEY FLOWING FROM RUSSIA JOINING THE WTO, WHICH WOULD RAISE PRICES FOR ENERGY RESOURCES. MEANWHILE, THERE ARE JOB CUTS IN THE ELECTRICITY SECTOR.

Whatever you may say, our politicians and ministers have more than enough reasons for frustration. Thus, for instance, some Cabinet members, in particular Prime Minister Mikhail Kasianov, economic development and trade minister Herman Gref, and some government chiefs of staff, recently read a certain report someone had helpfully sent them. It was titled "Open Russia and global competition: national economic strategy and the WTO". Its author is actually anonymous, disguised as certain experts in the sphere of economy and global economic cooperation.

The report views the matter of Russia's economy as regards the entrance to the WTO very skeptically, to put it mildly. Not only press for two years already has been advertising and propagating the idea of the entering the WTO as the cure-all for many economic troubles. It looks like we are about to apply for not only the WTO which by the way already consists of the total of 137 countries, but also for the European Economic Union, and instead of another denomination hand in hand pass on to the euro.

This scaled and, which is the most important, purposeful processing of the public must cost pretty money. It is remarkable that the same Gref and Kasianov are named among the ideologues of this campaign though they were so helpfully warned of the possible consequences of their activity along this line.

Yet Chubais is called the main promoter of this stir for pushing Russia through to the camp of international imperialism. This is not only because as far back as in August 1997 he was appointed as the chairperson of the Russian government commission for issues of the World Trade organization. The WTO which is the most powerful instrument to regulate the world economy is also the world's industrial and financial lobby. By the way, the terms on which Russia receives international loans and restructures debts it already has to a great extent depend on its relations with this lobby.

However, what is wrong about this? Thus, China was trying to join the WTO for nine years, all alone. In the interim, we seem to be invited, but we are balking.

Right we are, say the authors of the report. Russia's entrance to the WTO is merely an announcement about open economic borders for international monopolies. This will automatically lead to the non- competitiveness of Russia's entire economy.

Can't Chubais see that? He can, and how! It is just that the WTO will automatically send the prices for the energy supplied by RJES of Russia, the department Chubais heads, up to the skies. For by WTO laws, low domestic prices for energy resources are unfair competition. It is easy to picture what will happen to the industry consuming this energy and the rest of the economy too. As for the RJES head, he might well turn into an uncrowned king of entire Russia who dictates his rules by way of different discounts for tariffs.

Although, why uncrowned? Weren't there data about the secret ambitions of Chubais to become the president of Russia? He was reported to be ready to nominate himself at the elections in 2008.

Putin who will in two years apparently be elected for his second and last presidency has no real competition. This niche is genuinely empty. And paradoxical as it may seem, the closest candidate to occupy it is Anatoly Chubais. Although various political scientists describe him as the anti-people hero, yet he is the hero on account of his paradoxical image. Meanwhile, it has long been unnecessary to explain people in Russia how Ivan-Little-Fool can make a fairytale prince.

At the elections of 1996, Boris Yeltsin who was an absolute failure was able to reserve the throne owing exactly to such super support and huge funds spent on it. Then, the suppliers of monetary flows were all natural monopolies, lined up for this matter, and the Finance Ministry as the producer of money supply in the form of state securities. Chubais who by the way is well aware of the operation mechanism of such super support on Yeltsin's example (he was the one to arrange it) can so far count on RJES alone. Its resources are however insufficient for such an undertaking.

But why not? In case Russia's entrance to the WTO is pushed through before 2008, RJES may receive most powerful financial flows. And if not?

If this does not happen, then why can't the West provide the money for such a good deed? For if Chubais wins, the revenues of western corporations in the Russian market would easily recoup all invested funds. Aren't these agreements the motive for Chubais being such an eager supporter of joining the WTO?

And one more thing. It is said that the authors of this so-useful report are structures connected with the security agencies. This would be logical. It is known that the Federal Security Service and other informed special agencies actively oppose Russia joining the WTO, as their experts understand full well what threat this poses to Russia's economic security. If this is so, one can only be glad that some real action is finally being taken along this line.

P.S.

RJES FACES MASSIVE JOB CUTS UNDER THE GUISE OF "PERSONNEL NUMBER OPTIMIZATION"

Indeed, Russia's electricity sector is facing sweeping reforms which cannot help affecting the so-called "human factor".

We found out that the RJES Executive Office already assembled for the issue "of personnel number optimization" in the holding's branches in 2002 and the first quarter of 2003. They organized a working group on personnel number optimization, headed by RJES Deputy CEO Yakov Urinson. Judging by the fact that the working group has held nine meetings, RJES takes the redundancies seriously. As a result of the group's operation, the "number of employees in the fourth quarter as against the third quarter 2001 is less 11,600 people".

RJES has decided to cut 281,000 jobs in all, which is 41.2% of the total number of employees. For example, Mosenergo is facing the "optimization" of 19,277 people, Tyumenenergo - 15,178 people, and Khabarovskenergo - 9,115 people. This is more than half of the personnel of these regional utilities. (Translated by P. Pikhnovsky)



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